Features of Limited Partnership

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					           Features of Limited Partnership
Q 1.    What are different kinds of Partnership? Explain Limited Partnership and
       its features.

Following are the three kinds of partnerships :

1. Partnership at will
2. Particular partnership
3. Limited partnership

Limited Partnership:

A Limited Partnership consists of two or more persons, with at least one
general partner and one limited partner. While a general partner in a
Limited partnership has unlimited personal liability, a limited partner’s
liability is limited to the amount of his investment in the company. There is
no such type of partnership formed in Pakistan, there is a separate
partnership act for it.

Main Features:

Main features of this partnership are:

1. Limited Partner

       There is at least one partner who has limited liability.

2. Unlimited Partner

       There is at least one partner who has unlimited liability.

3. Number of Partners

       There can be at least 2 partners or 20 partners at most in an ordinary
       business while in banking business there is a restriction of not more
       than 10 partners.

4. Admission of New Partner

       Unlimited partners are authorized to admit new partners in this
       partnership without the consent of limited partners.
          Features of Limited Partnership
5. Registration

      In this partnership registration is compulsory by the law.

6. Transferability of Shares

      Limited partner has the right to transfer his shares to any other
      person but with the consent of all other partners.

7. Inspection of Books

      The books of account can be inspected by the limited partner.

8. Rights of Suggestions

      Limited partner holds the right to give suggestions to business

9. Participation in Management

      A limited partner is not allowed to take part in the management of the

10. Withdrawal of Capital

      Capital from the business cannot be withdrawn by a limited partner
      until he remains in partnership.

11. Separate Legislation

      This partnership is enrolled under the Limited Partnership Act, 1907.
          Features of Limited Partnership
Q 2: List down the modes of dissolution of a firm

Modes of Dissolution of Firm:

Dissolution of a firm may takes place in accordance to the Partnership Act,
1932, through following ways:

1. Dissolution by Agreement

2. Dissolution by Notice

3. Compulsory Dissolution

4. Contingent Dissolution

5. Dissolution by Court